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Jeff Auxier Comments on Zimmer Biomet Holdings

Zimmer Biomet Holdings (NYSE:ZBH)

Zimmer Biomet has faced some fixable issues with their supply chain hampering current operating results. However, they are a low-cost provider with a strong history in hip and knee replacements. Their rapidly growing S.E.T (surgical, sports medicine, extremities and trauma) and Spine & CMF (craniomaxillofacial) divisions leave them well positioned to take advantage of the growing demand for medical devices. The peak demand for hips and knees is 68 years old--just about the average age of the baby boomer today. Zimmer Biomet is planning on using their strong free cash flow generation to further reduce their debt in 2019.

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From Jeff Auxier (Trades, Portfolio)'s second-quarter 2019 market commentary.
This article first appeared on GuruFocus.